Xiaomi’s EV business turns profitable as 2026 delivery target comes into focus

Xiaomi’s car business has reached a new milestone, with the company saying its smart EV division posted annual operating profit for the first time in its latest full-year results.

• The smart EV unit generated annual operating profit of 900 million yuan in 2025.
• Xiaomi delivered 411,082 electric vehicles last year, according to its results.
• The company has set a 2026 delivery target of 550,000 vehicles.

Profitability arrives faster than expected

Xiaomi reported that its smart EV, AI and other new initiatives segment generated 106.1 billion yuan in revenue in 2025, up sharply from a year earlier. The company said the unit reached annual operating profit of 900 million yuan, a first for the business and a sign that scale and production efficiency are improving.

The milestone matters because Xiaomi only recently entered the EV market, yet its automotive push has already become one of the company’s most important growth engines. The results suggest the car unit is moving beyond the heavy investment phase and into a more mature operating stage.

Deliveries keep climbing

Xiaomi said it delivered 411,082 electric vehicles in 2025. That figure was driven by the SU7 sedan and the YU7 SUV, which contributed heavily to the company’s volume growth across the year.

The company’s results also point to a strong start for the new year. Xiaomi has now set a 2026 delivery target of 550,000 vehicles, a goal that will depend on production capacity, demand for its current models and the pace of any future model expansion.

Why this matters for Xiaomi’s car strategy

The profitability update strengthens Xiaomi’s case that its EV business is becoming more than a halo project tied to its consumer electronics brand. It also gives investors a clearer benchmark for whether the company can scale cars without relying indefinitely on losses elsewhere in the business.

At the same time, the 2026 target raises the bar. Xiaomi will need to sustain demand, manage supply, and keep improving margins if it wants the EV unit’s early profitability to last.

What to Watch

Investors will be watching whether Xiaomi can maintain delivery momentum in the first half of 2026 and whether the EV division can hold onto profitability as production volumes rise. Any updates on new models, factory expansion or order trends could shape expectations for the rest of the year.